The invention relates to the field of econometric analysis. Specifically, it relates to forecasting household economics based on macroeconomic data.
Predictions of household economics have a wide range of uses. Such predictions can indicate the likely sources of income for households and income amounts, likely expenditures and products and services purchased, amounts saved per household, and other similar information. This data can be used by advertisers seeking to target advertisements to households of interest, by government policy makers seeking to determine the effect of legislative and regulatory changes, by investors seeking to determine the risk of an investment, and so on.
Techniques for predicting macroeconomic changes, such as GDP, employment rates, interest rates, and the like, are well-known in the economic literature. However, these macroeconomic variables provide only a high-level analysis, without differentiating among different types of households. These macroeconomic models, then, are not able to provide the fine-grained analysis that may be required for decision-making in many circumstances.